Originally published on 12/10/25

The Trump Administration recently announced that they will be ending Saving on a Valuable Education (SAVE) plans, a move that will force over 7 million student loan borrowers into a new repayment plan. This news comes after months of pushback and legal drama surrounding the student loan plan. Experts call the move “reckless and short-sighted” and say it will create “even more needless confusion, uncertainty and financial stress for millions of Americans already struggling with the rising cost of living.” Below, we share what exactly is happening to SAVE repayment plans, including what borrowers can expect once the program ends.  

What is a SAVE repayment plan? 

A SAVE repayment plan is an income-driven repayment plan created by President Joe Biden in 2023 that allowed borrowers to make smaller payments toward their student loans each month. It was one of most discussed decisions of his presidency. 

 “Under this plan, no one with an undergraduate loan today or in the future, whether at a community college or a four-year college, will have to pay more than 5 percent of their discretionary income to repay these loans,” the former president said in a statement in November of 2023. 

The plan was met with considerable pushback and faced several lawsuits made by Republican led states, all of whom thought the plan was “illegal” and cost American taxpayers money. 

President Donald Trump agreed with that assessment, and is now working to eliminate the plan with the help of Secretary of Education Linda McMahon. 

The changes being made to SAVE repayment plans 

On Tuesday, December 9, the Department of Education (ED) issued a press release saying that they agreed with the State of Missouri—one of the states that sued the Biden administration over the SAVE plan—and would be dismantling the student loan repayment plan as soon as possible. 

What that means: The ED will not enroll borrowers or approve any in-progress applications. They are also expected to move all current borrowers into a “legal” repayment plan. Experts suspect that will be President Trump’s new Repayment Assistance Plan (RAP) program, which starts in July 2026 and was announced in his One Big Beautiful Bill earlier this year.   

“For four years, the Biden Administration sought to unlawfully shift student loan debt onto American taxpayers, many of whom either never took out a loan to finance their postsecondary education or never even went to college themselves, simply for a political win to prop up a failing Administration,” Under Secretary of Education Nicholas Ken said in statement. “The Trump Administration is righting this wrong and bringing an end to this deceptive scheme. The law is clear: if you take out a loan, you must pay it back. Thanks to the State of Missouri and other states fighting against this egregious federal overreach, American taxpayers can now rest assured they will no longer be forced to serve as collateral for illegal and irresponsible student loan policies.” 

Following the initial announcement, experts began warning how hard this change will be for Americans. Abby Shafroth, managing director of advocacy at the National Consumer Law Center, said in a statement, “Ripping the SAVE plan away from student loan borrowers now without access to a clear and affordable alternative is reckless and short-sighted, creating even more needless confusion, uncertainty, and financial stress for millions of Americans already struggling with the rising cost of living.”

When will SAVE plans stop?

As of publication there is no official word on when the SAVE plans will stop since the official elimination must be approved by the court. 

If the court does approve the decision, the ED will send out a notice to borrowers letting them know whether they are affected. The government organization also warn that “borrowers currently enrolled in the illegal SAVE Plan will have a limited time to select a new, legal repayment plan and begin repaying their student loans.” To determine how much those payments will be, they recommend using the Federal Student Aid (FSA) loan simulator tool. 

Link to original: https://www.womansworld.com/life/money/what-borrowers-must-know-now-that-save-repayment-plans-are-ending